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      Question

      Where both the parties to any agreement are under a

      mistake as to a matter of fact essential to the agreement,
      A The agreement is voidable. Correct Answer Incorrect Answer
      B The agreement can’t be enforceable at law. Correct Answer Incorrect Answer
      C The agreement is void. Correct Answer Incorrect Answer
      D The agreement is not void. Correct Answer Incorrect Answer
      E It’s the discretion of the Court. Correct Answer Incorrect Answer

      Solution

      Section 20 of the Indian Contract Act states if both parties are under a mutual mistake of fact essential to the agreement, the agreement is void. Such mistake affects the very foundation of the contract, making it unenforceable.[Indian Contract Act, Section 20]

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